DGAP-News: GFT Technologies AG: GFT Group posts strong revenue and earnings growth for financial year 2014 - guidance exceeded


DGAP-News: GFT Technologies AG / Key word(s): Preliminary Results
GFT Technologies AG: GFT Group posts strong revenue and earnings
growth for financial year 2014 - guidance exceeded

05.03.2015 / 07:33

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GFT Group posts strong revenue and earnings growth for financial year 2014
- guidance exceeded

  - Consolidated revenue up 38 percent to EUR 365.32 million 

  - Earnings (EBITDA) improved by 69 percent to EUR 34.64 million 

  - GFT division boosts revenue by 60 percent

  - Admission to TecDAX index

Stuttgart, 5 March 2015 - The GFT Group today announced its preliminary and
unaudited figures for the financial year 2014. With an increase in
consolidated revenue of 38 percent to EUR 365.32 million (prev. year: EUR
264.29 million), the company displayed dynamic growth and exceeded its
revenue target for 2014 by EUR 5.32 million. The significant year-on-year
increase in revenue resulted from the strong organic growth of the GFT
division with its solutions for the banking sector as well as from company
acquisitions in Italy (Sempla, 2013) and the UK (Rule Financial, 2014).
Revenue generated in the UK - the GFT Group's largest sales market - was
doubled to EUR 121.81 million (prev. year: EUR 61.02 million). In the USA,
revenue rose by 146 percent to EUR 26.17 million (prev. year: EUR 10.62
million). The need to comply with government legislation regulating the
banking industry has led to strong demand for IT consulting and services.
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
improved by 69 percent to EUR 34.64 million (prev. year: EUR 20.49 million)
and were thus EUR 2.64 million above target. Pre-tax earnings (EBT) rose by
55 percent to EUR 27.07 million (prev. year: EUR 17.52 million) and were
EUR 1.07 million better than expected. Compared to the previous year,
earnings per share improved from EUR 0.52 to EUR 0.76. On 4 March 2014,
Deutsche Börse decided to include the GFT share in its TecDAX index of
leading tech stocks below the DAX.

Dedicated to delivering IT services for the finance sector, the GFT
division raised revenue by 60 percent to EUR 279.22 million (prev. year:
EUR 174.04 million). Adjusted for the revenue contributions of companies
integrated into this division - GFT Italia (formerly Sempla) EUR 45.79
million (prev. year: EUR 21.77 million) and Rule Financial EUR 38.39
million (prev. year: EUR 0.00 million) - GFT generated organic growth of 28
percent. The GFT division's contribution to consolidated revenue rose to 76
percent (prev. year: 66 percent). Earnings (EBT) of the GFT segment
improved by 50 percent to EUR 28.07 million (prev. year: EUR 18.68
million), representing an operating margin of 10.1 percent (prev. year:
10.7 percent).

With its services for the staffing of technology projects, the emagine
division achieved revenue of EUR 86.09 million - 5 percent down on the
previous year (EUR 90.23 million). At the same time, however, EBT improved
by 54 percent to EUR 1.66 million (prev. year: EUR 1.08 million). The
operating margin rose to 1.9 percent (prev. year: 1.2 percent). With its
aim of focusing on the growth strategy of the GFT division, the GFT Group
began evaluating the strategic options for its emagine division in the
fourth quarter of 2014. An investment bank has been commissioned to
identify potential investors.

"Compliance and digitisation in the banking sector are the current growth
drivers for our business," says Ulrich Dietz, CEO of GFT Technologies AG.
"Our many years of close partnership with leading financial service
providers in Europe and America form the basis for the success of our core
business. We know the requirements of our clients and their markets. Our
innovation strategy is tailored precisely to these needs. What's more, our
acquisitions over the past few years fit really well with current market
developments. This gives us a solid foundation for stable growth also in
the years ahead."

Headcount grows to over 3,200 

As of 31 December 2014, the GFT Group had 3,248 full-time employees -
representing growth of 54 percent or 1,137 persons compared to the
prior-year figure (31 December 2013: 2,111 full-time employees). The
increase was due to the acquisition of Rule Financial as well as to
numerous hirings caused by high capacity utilisation, in particular at
nearshore development centres in Spain (up 274 to 1,320) and Brazil (up 97
to 283).

Stable dividend

The Executive Board and Supervisory Board of GFT Technologies AG decided
yesterday to propose a dividend of EUR 0.25 (prev. year: EUR 0.25) for the
financial year 2014 at the Annual General Meeting on 23 June 2015. This
corresponds to a dividend payout of EUR 6.58 million (prev. year: EUR 6.58
million).

Additional key data

In the fourth quarter of 2014, the GFT Group generated revenue of EUR
110.12 million (prev. year: EUR 78.85 million) and pre-tax earnings of EUR
7.88 million (prev. year: EUR 6.31 million). On 31 December 2014, the GFT
Group had cash and securities of EUR 38.25 million (31 December 2013: EUR
48.63 million). The equity ratio on 31 December 2014 amounted to 33 percent
(31 December 2013: 42 percent).

Outlook

The GFT Group anticipates a further positive development of business in
2015 and forecasts year-on-year revenue growth to EUR 425 million. The
Executive Board expects EBITDA to improve to EUR 44 million for the year as
a whole with an increase in EBT to EUR 31 million.

Detailed financial figures are available in the Investor Relations section
of the GFT website at http://www.gft.com/ir.

Key figures (deviations possible due to rounding differences)

<pre>


         IFRS figures in EUR million  01.01.-31.12.2014  01.01.-31.12.2013


                             Revenue             365.32             264.29


                              EBITDA              34.64              20.49


                                EBIT              28.08              17.65


         Earnings before taxes (EBT)              27.07              17.52


                          Net income              19.95              13.63


Earnings/share acc. to IAS 33 in EUR               0.76               0.52


 Equity ratio as of 31.12 in percent                 33                 42


   Employees (full-time) as of 31.12              3,248              2,111



</pre>

About the GFT Group:

The GFT Group is a global technology partner for future digital issues -
covering everything from discovering innovation to developing and
implementing sustainable business models.

Within the GFT Group, GFT stands for competent consulting and reliable
development, implementation and maintenance of customized IT solutions. The
company is one of the world's leading IT solutions providers in the banking
sector.

emagine offers companies the opportunity to staff their strategic
technology projects both quickly and flexibly with capable experts. To
achieve this, emagine has an international network of highly qualified IT
and engineering specialists at its disposal.

Headquartered in Germany, the GFT Group has stood for technological
expertise, innovative strength and outstanding quality for over 25 years.
Founded in 1987, the GFT Group is represented in eleven countries with a
global team spanning more than 3,200 employees. The GFT Group is listed on
the Frankfurt Stock Exchange (TecDAX - will become effective on 23 March
2015).

Contact:

<pre>

Christian Kleff
Head of Corporate Communications
GFT Technologies AG
Schelmenwasenstrasse 34
70567 Stuttgart
Germany
T +49 711 62042-125
F +49 711 62042-301
christian.kleff@gft.com
www.gft.com


</pre>



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Language:    English                                                    
Company:     GFT Technologies AG                                        
             Schelmenwasenstraße 34                                     
             70567 Stuttgart                                            
             Germany                                                    
Phone:       +49 (0)711/62042-0                                         
Fax:         +49 (0)711/62042-301                                       
E-mail:      Investor-Relations@gft.com                                 
Internet:    www.gft.com                                                
ISIN:        DE0005800601                                               
WKN:         580060                                                     
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
             Stuttgart                                                  
 
 
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